Report: Growth Hit By Worker Shortage
Jobs Market Data revealed in a new study last month that businesses are struggling to find the skilled workers they need, resulting in holding up wage increases and preventing growth.
Candidates secured permanent jobs at the highest rate for three months during November. So says London based research company IHS Markit in a report commissioned by the Recruitment and Employment Confederation (REC).
This follows a statement made by the Confederation of British Industry which predicted that unemployment in 2018 would fall to its lowest level for over four decades, threatening any hopes of a majority pay increase.
Kevin Green, REC Chief Executive commented:
“Having less access to candidates can have severe effects, restricting business’ ability to grow which means they won’t be able to create jobs or increase pay for staff.”
However, this high demand for workers has resulted in an increase in pay for some geographical areas across the UK, particularly in the North of England, which saw the biggest wage rise of all.
Recruitment agencies have collectively reported an increase of both permanent and temporary work during November 2017. However, although the demand seems very real, the earlier prediction of a reduction in pay increases also looks to be true. As most agencies reported no increase in pay for permanent salaries or temporary workers.
Mr Green added “The government needs to think longer term about how to fill vacancies left by EU workers. Turning the apprenticeship levy into a broader training levy will help.”